How to Check If a Car Has Money Owing Before You Buy

Buying a used car is a great way to save money. But what if the car still has money owing on it? That means the person selling the car hasn’t finished paying for it yet. This can lead to big problems for you — even if you pay the seller in full.

Before you buy any used car in Australia, it’s super important to check if money is still owing. In this blog, we’ll show you how to do that step-by-step in simple English.

Why It Matters: Don’t Get Stuck With Someone Else’s Debt

If you buy a car that has money owing, the finance company still owns it. That means the bank or loan company can take the car away — even after you’ve paid for it!

This is called an encumbrance. If the car has an encumbrance, the lender (like a bank) can repossess the car. You’ll lose the car and the money you spent.

Learn more here:
👉 What Is an Encumbrance? Why It Can Ruin Your Car Deal

Signs That a Car Might Have Money Owing

Here are some warning signs to look out for:

🚩 The seller is asking for quick cash
🚩 The price is much lower than other cars like it
🚩 The seller doesn’t want to give you the VIN (Vehicle Identification Number)
🚩 The seller says “Don’t worry, the loan will be cleared soon”
🚩 You can’t see any loan papers or receipts

If you see any of these signs, stop and check before buying.

Step-by-Step Guide: How to Check If a Car Has Money Owing

Let’s break it down into easy steps.

Step 1: Ask for the VIN

The Vehicle Identification Number (VIN) is a 17-digit code that is unique to every car. It’s like a fingerprint for the car.

You can find the VIN:

  • On the car’s registration papers

  • On a metal plate inside the engine bay

  • On the dashboard, near the windscreen

Always double-check that the VIN on the car matches the one on the papers.

Step 2: Use a Trusted Online Tool

Once you have the VIN, go online and do a car history check. These checks will tell you if the car:

  • Has money owing (encumbrance)

  • Is stolen

  • Has been written off

  • Has been in a serious accident

Here are some trusted sites in Australia:

🔗 Vin Check
🔗 Revs Check
🔗 PPSR Check
🔗 PPSR Check

These checks cost a small fee, but they can save you thousands of dollars and lots of stress.

Step 3: Look at the PPSR Report

When you use a service like REVS Check or Vin Verify, they will give you a PPSR Report. PPSR stands for Personal Property Securities Register.

The PPSR report shows:

  • If money is still owing on the car

  • Who the loan is with (bank, finance company, etc.)

  • If the car is safe to buy

You can read more here:
👉 Buying a Used Car? Watch Out for Hidden Encumbrances

Step 4: Only Pay After the Check Is Clear

If the car has no encumbrances, and everything looks good, then it’s safe to pay.

Make sure you:
✅ Get a receipt with the seller’s name and signature
✅ Check that their name matches the rego papers
✅ Keep a copy of the PPSR report for your records

What Happens If You Skip the Check?

If you don’t do the check and the car has money owing:

  • The bank or lender can take the car back

  • You won’t get your money back

  • You’ll have to deal with police or lawyers

  • You’ll feel angry, stressed, and upset

Want to know more risks? Read this:
👉 5 Mistakes That Could Lead You to Buy a Stolen Vehicle

Real Example (What Can Go Wrong)

Let’s say Sarah buys a used car for $15,000. The seller says, “Don’t worry, the car is mine.” But Sarah doesn’t do a REVS Check.

A month later, she gets a call from a repo agent. The car was bought on a loan that was never paid off. Now the lender wants the car back. Sarah has to give up the car and loses all her money.

Don’t let that happen to you.

Final Checklist Before Buying a Used Car

Here’s a quick list to help you stay safe:

✅ Get the car’s VIN
✅ Use Vin Check, Revs Check, or PPSR Check
✅ Look for encumbrances or loans
✅ Check the VIN matches on the car and the papers
✅ Make sure the seller’s name matches the registration
✅ Get a written receipt
✅ Never buy before doing a proper check

Final Thoughts

Buying a used car is exciting, but you need to be smart about it. Always check if the car has money owing before you hand over your cash. One simple check can save you from losing thousands of dollars and a whole lot of headaches.

By using tools like Vin Check, Revs Check, or PPSR Check, you can buy your next car with confidence. Don’t rush. Take your time. Ask questions. And never be afraid to walk away if something feels off.

Useful Links to Help You Check:

🔍 Vin Check in Australia
🔍 Revs Check Qld for Queensland 
🔍 PPSR Check
📘 What Is an Encumbrance?
🛑 5 Mistakes That Could Lead You to Buy a Stolen Vehicle
📗 Buying a Used Car? Watch Out for Hidden Encumbrances

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